Classifying new products: Types of Products: Six Kinds of Products

Six Kinds of Products

-By Booz, Allen and Hamilton (1982)

1. New to the worlds (Totally new product like, evolution of mobile)
2. New product line (mobile exiting now tablets)
3. Addition to existing product line (mobile with flip )
4. Improvement and revision to existing products ( mobile with new OS, or new features)
5. Re positioning (Mobile phone for old age people: chocolate for old age people)
6. Cost reductions (Now we offer our luxurious cell phone for common person ) 

Classifying New Product: Characteristics of new products

Characteristics of New Products 

• Relative Advance: Seek to measure economic benefits
• Compatibility 
• Novelty with an innovation
• More compatible a new product in with the existing system, its to be readily accepted
• At certain plant the new product may so resemble 
• Complexity:
• define as degree of deficit associated with full understand of application of innovation
• Divisibility
• measure the extent to which it is possible to try an innovation before coming to final adoption/rejection decision 
• it can have significant influence upon attitudes to wards a new product
• Communicability
• It's viral activity throughout the new product, new product purchase decision 

All above factor measure objective factor 

For subjective side: perception (important for product adoption)

Product Classification for Consumer Goods

Product Classification for Consumer Goods

For consumer goods, product divided in three category 

1. Convenience Goods
2. Shopping Goods
3. Specialty Goods

Convenience Goods: Those goods which consumer purchase frequently, immediately and with minimum effort. I want to buy a new ball pen, For example, during go to college, I stop my car and go to shop and buy immediately. No more search, not take opinion of others. Very less effort

Shopping Goods: Those goods which consumer purchase in the process of selection and purchase on basis of suitability, quality, price, and style. I want to buy a cloth, For example, I'll check it out brand, take trial, asking to my brother/friends, looking price.

Specialty Goods: Those consumer good in which a significant group of buyer and make special purchase effort. I want to new Car, For example, I'll check out features compare with other brands, looking about price, asking users of cars, check out experts view about car.

Types of Demand

Types of Demand

There are three types of Demand

1.  Effective demand: Customer financially sound and customer want product.
2. Potential demand:  Customer financially sound but customer don't want product.
3. Latent demand:      Customer not financially sound and customer want our product.

Loans, help to convert Latent demand to Effective demand 

What is Product? (In Management)

What is Product?

The product is the object of the exchange process. The manufacture/supplier/producer offers to a potential customer in exchange for something which add or benefit to manufacture/supplier/producer.

Here something "something" is Money

Other than money, Barter (: exchange of things) or counter trade